CASCO: what do you need to know when selling a car?
CASCO is a voluntary car insurance that ensures protection against such risks as theft, damage in an accident (including due to the fault of the owner), natural disasters, fire, combustion and other unforeseen situations. Unlike compulsory civil liability insurance of vehicle owners (CLI), CASCO covers damage caused to the owner's car itself.
Conditions and cost of the policy depend on the insurance company, characteristics of the vehicle and selected coverage amount.
When selling a car, the owner may have a question: what to do with the current CASCO policy, and is it possible to get a refund for it? This is especially true if there are several months before the insurance period lapses, and the insurance has been paid in full.
When a car is sold in Kazakhstan, CASCO policy cannot be transferred to a new owner, since it is a personal agreement between the insurance company and the insured person, given his insurance history, driving experience and other individual parameters.
In such situation, seller of the vehicle has two possible options: terminate the voluntary motor insurance contract and get back a part of the insurance premium for the unused period or reissue the policy for another vehicle, if this is provided for by conditions of the contract.
Therefore, before you sell a car with a valid CASCO policy, it is recommended to contact your insurance company in advance to clarify the procedure for termination of the contract and the possibility of transferring the insurance to another car. This will avoid unnecessary costs and save a part of the amount paid.
Important: the driver must carefully study terms and conditions of the CASCO contract at the stage of its signing - especially if you anticipate the possibility of selling the car before the policy expires. Pay attention to the procedure for early termination of the contract, availability of efund of part of the insurance premium, as well as the possibility of transferring the insurance to another vehicle.
These provisions will help simplify settlement of the refund with the insurance company when you sell your car.
External Communications Directorate